Churn happens when customer engagement goes down. That’s why, one of the easiest and most reliable ways of predicting and preventing churn is to monitor the customer engagement level changes.
To do that, we first need to quantify the engagement level in an objective manner.
You can do that by creating a list of engagement actions.
Let’s say you are Mailchimp. You would most probably define the following engagement actions:
- sending newsletters
- monitoring results and
- adding subscribers
Each time a user does an engagement action, they receive engagement points. Their engagement score is the result of their engagement frequency and engagement points.
The next step is to calculate the engagement score each day and monitor each time it goes up and down.
Our stats show that, more than 80% of all those who churn register a considerable drop in engagement level a few weeks before the churn moment.
The most common scenarios of preventing churn, that we’ve noticed with our customers here at InnerTrends, are:
- Companies sync all the users that go from high engagement to medium or low engagement with Salesforce or any other CRMs. Customer Success people can then get in touch with them right away.
- They sync all the users that go from medium to low or very low engagement to Customer.io or any other marketing automation service and trigger campaigns designed to re-engage customers.
The best way to fix churn is to target customers while they are still active are still using your product.
Targeting them after they left takes up much more resources and can get you only that far.